Orthopedic Marketing growth

1. Orthopedic Industry
Presented by Kathryn Barbe

2. Sustainability
Emissions to Air
Hazardous Waste
Non-hazardous
Waste
Total Energy
ISO 14001
Water usage
Kathryn Barbe

3. Analyst Forecast Earning Growth
12%
10.5%
8%
4.6%
4.2%
4%
3.7%
3.4%
0%
Dec 2010 Dec 2011
Dec 2012 Dec 2013 Long Term 5 Years
Kathryn Barbe

4. Competitors
• Zimmer Inc.
• Stryker Corporation
• Johnson & Johnson /DePuy Inc.
• Biomet
Kathryn Barbe

5. Stryker
• Trident Alumina
Ceramic Bearing
• Press-Fit Stems
• Exeter
• Secur-Fit Max
• Acetabular Cup System
Kathryn Barbe

6. Zimmer
• Versys
• Trabecular Metal
Primary Hip
• ZMR Hip
• Trilogy Cup
• Longevity Polyethylene
Kathryn Barbe

7. Biomet
• E1
• M2a-Magnum™
Metal-on-Metal Hip
• Taperloc® Hip Stem
• Taperloc® Reduced
Distal Stem
• Taperloc® Microplasty™
Stem
Kathryn Barbe

8. DePuy
• Tri-lock Bone
Preservation Stem
• Pinnacle
• ASR XL Acetabular
• AML Total Hip System
Kathryn Barbe

9. Structures of the Hip
Kathryn Barbe

10. Common Causes of Hip Pain and
Loss of Hip Mobility
Osteoarthritis
• Usually occurs after age
50 and often in an
individual with a family
history of arthritis. In this
form of the disease, the
articular cartilage
cushioning the bones of
the hip wears away. The
bones then rub against
each other, causing hip
pain and stiffness.
Kathryn Barbe

11. Rheumatoid Arthritis Causes
Rheumatoid Arthritis
• a disease in which the
synovial membrane
becomes inflamed,
produces excessive
synovial fluid, and
damages the articular
cartilage, leading to pain
and stiffness.
Kathryn Barbe

12. Traumatic Arthritis Causes
Traumatic Arthritis
• Can leads to a serious hip
injury or fracture. A hip
fracture can cause a
condition known as
avascular necrosis. The
articular cartilage becomes
damaged and, over time,
causes hip pain and
stiffness.
Kathryn Barbe

13. Osteoarthritis
Osteoarthritis Fracture
Fracture
Kathryn Barbe

14. Implant Packages: Component Pieces
Hip Package
• Metal Cup
• Plastic Liner
• Femoral Head
• Hip Stem
Kathryn Barbe

15. Implant Selection
Relies upon Hips
• Patient’s Activity Level High Demand
• Porous Hip
• Age
• Bone Quality Medium Demand
• Cemented Hip
• General Health
Low Demand
• Life Expectancy • Cemented/Poly cup
• Weight
Kathryn Barbe

16. Moving on….

17. Market Drivers
Target
• Aging population (Baby boomers) estimated to double by 2020
• Demand on arthroplastics to rise with increasing osteoarthritis
• Rising rate of obesity
• Treatment alternatives/new technology
Patient Selection
• Age and activity level
• Isolated hip disease
• Excellent bone quality
• Normal kidney function
Kathryn Barbe

18. Pieces of One Puzzle – 4 P’s + 1
Price
Product People
Place Promotions
Kathryn Barbe

19. Technology Trends
Technology
Minimally
Invasive (MIS) Computer
Robotics Surgery
Kathryn Barbe

20. Marketing Balance
Opportunity & Challenge
Opportunity Challenge
Marketing
Kathryn Barbe

21. Who or What determines which products
are used in the Hospital?
Is product choice determined by:
• The physician?
• The agreed/desired outcome for the patient?
• The desires of the patient?
• The vendor?
• The GPO?
Kathryn Barbe

22. Hip Surgery - Innovation System
Competition
• Surgeons- prosthesis named after them, own research
program, company benefits, autonomy and prestige
• Companies- stay ahead of market with innovative products
unique to them
• Critical role of surgeon preference in product selection
Kathryn Barbe

23. The Medical Device Industry Today
Investors beginning to show much more interest in medical device
companies:
• Straight-forward business model
• Quicker product turn around
• Incremental innovation
• VC’s willing to invest
Innovation rate will still likely be slowed by the adoption rate of
physicians:
• Training takes time
• Conversion slower due to current successful treatment
• Conservative Mind Set/Comfort Zone
Kathryn Barbe

24. Orthopaedic Trends
Industry growth slowing (pricing), but demographics are completely compelling
Key Issues affecting both surgeons and industry
• Medical Legal Liability
• Intellectual Property
Obesity continues to drive
• Break more bones
• Have more joint problems
• Have more spine related disorders
Joint products and treatments gaining the attention of surgeons and industry
Regulatory requirements increasing worldwide
FDA/Health Canada proposal to track medical devices
Kathryn Barbe

25. Marketing in the 21st Century
• Shift in Marketing Mix Doc, I already
diagnosed myself on
• Internet opportunities the internet, I am
here for a second
opinion.
• Changing aspects of
training
• E-marketing
• Increase patient
knowledge
• E-learning
Kathryn Barbe

26. Internet Pros and Cons
• Misleading information
• Bad press
• Privacy/ Security
• Costly
• Access Information
• Patient referrals
• E-learning (physicians)
• Advertising & Publicity
Kathryn Barbe

27. New Product Development Process
Idea Generation
Idea Screening
Concept Development
Marketing Strategy
Business Analysis
Product Development
Market Testing
Commercialization
Kathryn Barbe

28. Idea Generation
Customers
Employees
Distributors
Competitors
R&D
Sources of
New Product Consultants
Process
Creative Thinking
Kathryn Barbe

29. Influencing Factors
Market environment
• Regulations
• Customer
• Competition
• Geography
• Product
Kathryn Barbe

30. Deliver Marketing Excellence
Marketing Excellence
Capture the voice of the customer
Create innovative solutions
Champion growth and strategy
Brand Development
Communicate brand story to drive growth
Outcomes
Growth Innovation Brand Talent
Kathryn Barbe

31. Star Model Planning
Growth Innovation Brand Talent
1) Strategic Direction Alignment 2) Process & Systems
What does success look like? What’s the specific work (key actions) that
How does this align to the key objective? needs to be accomplished?
What’s the current environment? What core processes & systems are needed?
Who are the key stakeholders? How will the work be created & delivered?
How does this support our brand? What type of decision process is required?
How will success be measured?
Payoff for:
Customer
Smith & Nephew
5) Communication You 3) People
What common information What are the roles & responsibilities?
needs to be shared? What are the right skills & knowledge?
Who needs the information? What cultural norms & behaviors are required?
How and when will the information What are the reporting relationships?
be shared? What’s the distribution of power & decisions?
4) Resources How will performance be measured?
Do we have people’s commitment?
Where will the work be accomplished?
What is the budget & timeline?
How will people be recognized and rewarded?
Kathryn Barbe